Application of Theories in Firms Assignment Example | Topics and Well Written Essays - 2000 words

Application of Theories in Firms - Assignment ExampleCompanies use penetration marketing to gain market sh are and retain their customers rule Various literature and information were evaluated as regards the culture of employee empowerment theory. Empowerment as a friendly theory is traceable to Freire, an educator and humanitarian of Brazilian origin who espoused a plant for liberating the oppressed in the world using education. The idea of empowerment was mostly associated with alternative approaches to social or psychological development. The theory of employee empowerment suggests that employees will undertake their duties and responsibilities in a more responsible, efficient, and effective manner if they are allowed to carry on in a less encumbered way and are better informed (Hur, 2006). Employee understanding of the mission, objectives, vision, and goals of the caller will enable them demonstrate greater initiative, risk-taking and responsibility when they are effectively trained, accorded an environment that is relatively big of castigatory consequences and they have some authority in making decisions. It involves delegating authority up to the lowest take within the organization where decision making is allowed. Over the past twenty years, the theory of employee empowerment has been attempt and proven to yield considerable predictive value (Towns, 2010). Employee empowerment culture gives employees the leeway to make decisions by themselves and this gives a lot of room for creativity, and entails principles of shared leadership and is a shift from the traditional hierarchical leadership method. It incorporates an approach that is motivational where not much independent power and authority is accorded to employees. The other approach is relational that entails a lot of power decentralization (Towns, 2010). Question Two The theory of penetration pricing is a strategy that entails giving customers a markedly low price (compared to average market price) at the earliest stages of the business enterprise with the belief that over time due to experience and increased efficiency, costs of turnout will go down for instance due to economies of scale. This ultimately leads to the enterprise becoming profitable (Rao, 2009). It is fitted when a completely new product is being introduced, the market has customers that are price sensitive, a brat of a competitor entering the market exists, and continuous innovation is expected. Question three This memo reviews Google and Wal-Mart as two companies in the USA that practice employee empowerment and penetration pricing respectively. Most traditional companies train their employees to rely and depend upon leaders whom they really have no intrinsic connection to as the message for companion progress. Employees are just not trusted to make the right decisions on matters affecting the company on their own (Llopis, 2010). Google has shown leadership and breaking away from the pack by emp owering their employees to make decisions and explore their creativity. Google employees are empowered to use 20 percent of the time they spend at work daily to absorb personal projects that are not related to Google as a company and remarkably enough, this presently accounts for fractional of Google